New law introduced to rehabilitate bankrupt businesses in Thailand

BANGKOK, June 6 (TNA) - The Legal Execution Department, under the Thai Ministry of Justice, unveils a new business rehabilitation law that will allow many small and medium-sized enterprises (SMEs) to restructure their debts. The department's director-general, Ruenvadee Suwanmongkol, told journalists on Monday the new business rehabilitation law, which has taken effect since May 25, gives for the first time a chance for defaulting local SMEs that still have business opportunities to seek rehabilitation like companies limited and public companies, helping promote equality and maintain businesses. Salinee Wangtal, Director-General of the Office of Small and Medium Enterprises Promotion, pointed out that the new law benefit individuals and juristic persons with a debt of up to 10 million baht. Salinee explained if main creditors accepted the troubled SMEs' rehabilitation plans, other creditors could not file a lawsuit and that facilitated their debt restructuring. Besides, such SMEs debtors have high chances to borrow from the turnaround fund of her office and the new law should be, thus, beneficial to about 7,400 SMEs. (TNA)